ONLINE EXCLUSIVE: Talent Management Best Practices
J.P. Guay
Talent management strategy, along with technology, enables manufacturing organizations to create and automate workflow around their process maps, ensure all employees have needed skills and competencies, and document compliance with quality standards. Making it a reality, however, can be a challenge. From securing executive buy-in to gaining employee acceptance, implementing a talent management system requires a solid understanding of standardized best practices. Here are two examples of manufacturing organizations that effectively employed talent management.
Streamlined Process at Basic American Foods
Basic American Foods (BAF) is an innovator and leader in convenience and refrigerated foods. With nearly 40 patents to its credit, the Walnut Creek, CA, company is a leader in research and development, quality, and customer service. Before transforming its performance management process, BAF conducted performance reviews on paper. Trying to manage performance on paper was not helping the company achieve its business objectives, acknowledged BAF’s Regional Human Resources (HR) Manager Melanie Rydalch.
Employees did not want to participate in performance appraisals using the old system. BAF’s HR professionals found the old process frustrating because it did not help them get the results they knew were possible. They sought an automated, online system that would enable them to spend more time providing feedback and coaching rather than spending it on administration.
By streamlining the process and providing tools that made the whole appraisal process easier, BAF transformed its employee performance management from a once-a-year chore to an ongoing, year-round development process. Tools such as comment helpers, development tips, performance journals, and goal tracking help managers provide regular feedback and coaching to employees.
To objectively measure the success of the new talent management approach, BAF conducted an online user survey. Nearly 90 percent of responding employees expressed overall satisfaction with the system. The HR team projected that satisfaction with the new system will continue to improve.
Creating a Culture of Coaching and Accountability at Sun-Rype
Sun-Rype Products Ltd. is a 64-year-old juice and fruit snack company. It grew out of the fresh fruit business in the Okanagan Valley, Kelowna, British Columbia. In 1946, the B.C. Fruit Growers Association created B.C. Fruit Processing Ltd. to produce and sell pure 100-percent apple juice, branded “Sun-Rype." This publicly traded company generates approximately $150 million in annual sales.
The company had implemented a paper-driven performance management process. To fix that process, the company moved to an automated system as a means to improve employee coaching and accountability. Within a few months, employees developed a sense of urgency, managers became accountable, and acceptance of the system increased.
A few years into the process, Cindy Wilker described the impact from her perspective as Sun-Rype's vice president, supply chain: “There was a quantum leap in a universal acceptance of performance management. Now managers across the organization are proactive and diligent. They regularly use the tool to record and make notes about achievements or roadblocks. They look at making sure the right things get done throughout the year. We all focus on the meat of a meeting, whether it’s constructive criticism or glowing accolades. It's about goal alignment over several sessions rather than one formal annual process. And it’s become ingrained in our culture.”
CEO Dave McAnerney elaborated: “Everyone plays a role in delivering against our strategic plan. This is achieved through our rigorous approach to talent management. We are a results-oriented culture, and we get that through tracking not only what gets done but how it gets done, and that's been built into our competency definitions. This emphasis on results is also built into the way our managers work to help employees improve performance. The solution not only helps us track individual deliverables but also ensures they’re aligned to our strategic plans.”
Michelle Reid, HR manager, pointed out that managers and employees complete their reviews on time and that the company realized a first-year cost savings of $85,000. Sun-Rype saved time by creating efficiencies in the process and ensuring tighter tracking of the compensation budget.
Employee engagement rose. Turnover rates decreased from 20 percent to four percent since the company initiated the performance management program five years ago.
“People feel really good about what they do and what they contribute, knowing there are a lot of different promotions and leadership roles that have evolved through our leadership development program, which is part of our performance management and career development approach,” said Reid. Individuals promoted from within hold 64 percent of the company’s leadership positions.
J.P. Guay is a regional manager with Halogen Software. He focuses on helping HR leaders and senior management in manufacturing organizations optimize their talent management practices. He can be reached at jguay@halogensoftware.com.
